LEWEK ARUNOTHAI BOOSTS EOC'S 1Q FY10 NET PROFIT BY 62% TO US$9.9M

 1Q FY2010 EPS increased by 62% to 8.9 US¢ from 5.5 US¢  Operating cash flow increased to US$14.9m while net gearing improved to 2.2x  Group expects healthy deployment of vessels in the medium term amid positive industry outlook SINGAPORE, 14 January 2010 EOC Limited (EOC or the Group), one of Asia’s leading operators of offshore construction & floating production vessels, delivered an impressive set of results for the first quarter ended 30 November 2009 (1Q FY10), thanks to contributions from the Group’s first floating production, storage and offloading (FPSO) vessel, the Lewek Arunothai, which achieved full production and received client acceptance in October 2009. The Group saw net attributable profit swell 62% year-on-year (yoy) to US$9.9 million from US$6.1 million, on a revenue of US$27.4 million, up 41% from US$19.5 million in the previous corresponding period. EOC achieved impressive earnings growth despite the transition of the Lewek Chancellor, one of its accommodation crane barges, to a new contract that commenced at the beginning of 2Q FY10. With strong contributions from the Lewek Arunothai, the Group’s return-on-equity (ROE) rose 1.9 percentage points (ppt) to 7.3% from 5.4%, while earnings-per-share (EPS) increased by 62% to 8.9 US¢ from 5.5 US¢. Mr Lim Kwee Keong, EOC’s Chief Executive Officer, said: “The Lewek Arunothai’s contribution to our impressive results this quarter demonstrates that our strategy for building a recurrent income stream by growing our number of premium FPSOs has been right on the mark. We look forward to the delivery of our second FPSO, which is expected to begin production in the second quarter of 2011.” The Group also bettered its financial position during 1Q FY10, strengthening its balance sheet through improved cash flow. Its net gearing was lowered to 2.2 times from 2.3 times while its interest cover rose to 9.3 times from 6.1 times. Cash flow from operations grew tremendously, to US$14.9 million from US$2.5 million over the same period. On the Group’s prospects, Mr Lim commented: “We expect to see all our vessels amply deployed in the medium term amid the positive outlook for the oil and gas industry. Global demand for FPSOs is also expected to increase as oil prices remain firm and global oil majors look to raise their capital expenditure. Our confidence has also increased as we demonstrated that we will be able to capitalise on these opportunities through the receipt of award for our second FPSO.” The vessel has already secured a contract with Premier Oil Vietnam Offshore B.V. (Premier Oil) for the development of the Chim Sao field in Vietnam. The project is potentially worth up to US$1 billion for the entire duration including all extension options being exercised.